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Risk Recommended for the Position Sizing Game
Q: Van, I recently read one of your books, in it you recommended not risking more than .5% per position if your trading your own funds. In your game that I downloaded I tried only risking .5% of the 10k starting amount per trade but it did not work to well. When I bumped up the amount of risk...
Value of Trading to Society A Follow up by Tom Basso
Tom Basso wrote in in response to last week's question. Van, Regarding the question on the value of trading to society [in the newsletter a couple of weeks ago], I would cite a study I did long ago showing hedgers laying off risk to speculators that would, by taking positions, take the risk...
What is a Trader's Contribution to Society?
Q: I have a question I'd like to ask you and it's in regards to establishing a mission statement for me as a trader. As a trader, what is the REAL service that I provide? What's my contribution to society at large? I've been reading a book by Steve Pavlina called Personal Development for Smart...
Trading Game Question
Q: I have played your Secrets of the Masters software multiple times. In level 7, you note that you can let your profits run because you are using a system where probabilities go in your favor with a winning trade. How are you testing systems to see if they have this characteristic? I...
Position Sizing Using Mean Reversion Strategy
Q: I feel that I have a good handle on the concepts of limiting risk and position sizing as they apply to trend following strategies. However, I have a bit of a conflict when it comes to mean reversion trading strategies. My objective for the mean reversion strategy that I trade is to look for...
Is Graham's number still a valid concept?
Q: On page 114 of your book Safe Strategies for Financial Freedom you discuss how to calculate Graham's number. Is Graham's number still a valid concept? Using Yahoo and IBM for a sample calculation. I get an unrealistically low number. Am I doing something wrong? Thank you, Walter A: The...
Should I Just Give Up?
Q: I recently purchased the Peak Performance Home Study Course and have taken the Investment Psychology Profile. Well, after taking the profile and the tests in Book 2, it seems that I shouldn't be trading...ever. As per the WT test my score is 41, A/B 16, and LSI of 82. My profile says that I...
Clarity on the Super Trader Program
I would like to do the Super Trader course but would like clarification on some issues. Q1: You mentioned there is an approval process. Could you explain what that entails and whether I could coincide that process with my workshop attendance in 2010? A1: Van would like to see you in a Peak 101...
Do I Have to Commit to Being a Full-time Trader to be Successful?
Q: A few months ago I ordered your Peak Performance Course and am working my way through it. In Book 1, you talk about commitment and how important it is, so I am taking it seriously. The text seems to imply that to be a successful trader, one has to commit to doing it full time. Am I reading...
Should You Bet More During a Winning Streak?
Q: In re-reading Trade Your Way To Financial Freedom (First Edition) for the workshop next week I’ve come across something I don’t understand and would like some clarity for my trading. I’m re-reading the bias section several times so I can understand them better to try and eliminate as many...
Past Performance of Systems Offers No Guarantee of Future Results
Q: This is a response to Van's article on Poker [in last week's Tharp's Thoughts issue]. Poker and Blackjack odds can be calculated [everyone knows what cards are in the deck]. A card player can know for sure that they will come out ahead as long as they follow the correct rules of play....
Does a System Need a High Percentage of Wins?
Q: Hello Van, I'm looking forward to attending Blueprint next month. In the meantime I have a "Holy Grail" question.On page 181 of Super Trader in the first bullet item you state that we need a huge number of winners and a small variation in the amounts won and lost for us to achieve a Holy...
A Follow-up Question on Currencies
Q: In your weekly newsletter #439 Q&A section, answering a question from Patricia, you said, "I should point out that currencies are not even great places to put money right now." Why are the currencies not great places to put money right now and what is needed to make them a great place? A: ...
Evidence of Secular Bear Market
Q: Van talks a lot about being in a secular bear market, but what evidence do we have that this is the case or what is this belief based on? Kind regards, Paul A: Secular bear means that PE ratios go down over a long period of time. What evidence is there? Look at the PE ratios on the S&P 500...
Questions from a Bank Employee
Q: I started as a full time trader at a bank a few months ago. Basically, I feel like I have a Ferrari, but I can only drive it on a parking lot. I have all of the currencies available to me and tons of capital, yet I do not have consistent results. I am an engineer with a masters in financial...
